Section 1 Short title
This Act may be cited as the “Carbon Capture and Sequestration Expansion Act”.
Carbon Capture and Sequestration Expansion Act
A BILL
To amend the Internal Revenue Code of 1986 to extend and modify the credit for carbon oxide sequestration, and for other purposes.
Sec. 2 Extension and modification of credit for carbon oxide sequestration
Extension— Section 45Q(d)(1) is amended by striking “January 1, 2026” and inserting “January 1, 2032”.
Modification of carbon oxide capture requirements— Section 45Q(d)(2) is amended to read as follows:
“(2) which captures—
“(A) in the case of a direct air capture facility, not less than 10,000 metric tons of qualified carbon oxide during the taxable year,
“(B) in the case of an electricity generating facility, not less than 18,750 metric tons of qualified carbon oxide during the taxable year and not less than 75 percent of the carbon oxide that would otherwise be released into the atmosphere by such facility during such taxable year, and
“(C) in the case of any other facility, not less than 12,500 metric tons of qualified carbon oxide during the taxable year and not less than 50 percent of the carbon oxide that would otherwise be released into the atmosphere by such facility during such taxable year.”
Effective dates—
Extension— The amendment made by subsection (a) shall apply to facilities the construction of which begins after December 31, 2025.
Other amendments— The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2021.